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| Strategic Investment Funds
ECONOMIC IMPACT AND ESG REPORTING ISIF monitors compliance with its economic impact objectives at the Irish Portfolio company level and the portfolio level. Every February and August, investee companies fill out an impact survey, with data such as revenues, employment, and exports. In addition, each year, ISIF compiles an annual control report that measures the performance of all Irish Portfolio companies against financial and impact targets. Once exiting investments, ISIF does not exercise any further active impact monitoring. ISIF publishes an annual and semiannual economic impact report with detailed metrics on ISIF’s capital allocation and contribution to economic activity and employment. Table 10.5 provides a summary of these metrics. Initially, the focus was on fund-level portfolio metrics for publication; however, as the report has evolved, the reporting now takes account of sector-specific metrics that cannot be consolidated at the fund level (for example, megawatts of renewable energy, number of new housing units, and number of alternative SME financing platforms). The collection, verification, and reporting of economic impact data can be challenging given that it is a relatively new concept for investees to report on. ESG criteria are applied in ISIF investment activities, and measurement of some noneconomic impacts over the entire Discretionary Portfolio has commenced (although these are not yet published at the time of writing). ISIF has developed an ESG assessment framework focused on identifying material ESG risks, guiding due diligence, and monitoring key performance indicators through the investment life, in the Irish Portfolio. The framework is based on guidance from both the European Bank for Reconstruction and Development and the Sustainability Accounting Standards Board, combined with asset class–specific TABLE 10.5 Comprehensive sample of metrics disclosed in ISIF’s economic impact report AREA
METRICS
Capital
• • • • • •
Employment
• Total employment supported by Irish Portfolio companies and projects • Total wage bill • Split of employment by region (Dublin and ex-Dublin)
Economic activity
• • • •
Discretionary Portfolio size Capital committed Capital committed by co-investors and multiplier Market value of capital invested Split of capital invested by region (Dublin and ex-Dublin) Capital committed by strategy (Enabling Ireland, Growing Ireland, Leading Edge Ireland) and, for each, by subsector • List of new investments during period and ticket sizes • Fund returns • List of portfolio companies of investee funds
GVA Allocation of GVA by region Exports generated by portfolio companies Strategy-specific metrics, for instance: –– Enabling Ireland: MW of renewable energy installed, tons of waste processed, housing units completed –– Growing Ireland: number of SMEs backed –– Leading Edge Ireland: VC funds invested in and ticket sizes –– Case studies
Sources: ISIF 2017, 2018a. Note: GVA = gross value added; ISIF = Ireland Strategic Investment Fund; MW = megawatt; SMEs = small and medium enterprises; VC = venture capital.
